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Consider a basic Solow-Swan model. Suppose the aggregate production function is Y = AK^1/2L^1/2 and that A=1, the depreciation rate is = 0.06 and the
Consider a basic Solow-Swan model. Suppose the aggregate production function is Y = AK^1/2L^1/2 and that A=1, the depreciation rate is = 0.06 and the saving rate is s = 0.12. In steady state, which of the following is TRUE? O Output per worker is 2.00 and consumption per worker is 0.24 O Output per worker is 2.00 and consumption per worker is 1.76 Output per worker is 1.68 and consumption per worker is 1.48 Output per worker is 1.68 and consumption per worker is 1.12
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